Enom 2015 Annual Report Download - page 8

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x Niche Properties. We also own and operate certain niche properties that are focused on specific topics or
interests, such as airliners, pets and cars, where people can entertain their passions and share related
information with like-minded people.
We also distribute our content to brands and publishers as part of our content channels solution. We use our
content creation platform to create original custom content for brands and publishers, which we host and seamlessly
integrate onto dedicated sections of these customers’ websites. Our content channel agreements generally include a
revenue sharing arrangement with regard to advertising revenue generated by the display of the content we create and
distribute through these content channels.
Monetization. We have developed a multi-faceted monetization platform, incorporating a multitude of partners
ranging from sell side platforms to advertising exchanges, that we deploy to our online properties and those hosted for
our content channel customers. We use a series of sophisticated algorithms and proprietary methods to present visitors
with relevant advertisements that can be dynamically optimized via creative rotation, frequency capping, and data to
improve monetization performance. Our system of monetization tools also includes yield optimization systems that
continuously evaluate the performance of advertisements on desktop and mobile in order to maximize revenue, while
also utilizing ad management infrastructures that manage multiple ad formats and control ad inventory.
For monetization of our display ad inventory, our programmatic platform, D360, automates the selling of ad
inventory utilizing third-party technology and sophisticated data sets. D360 matches advertisers looking for specific ads
in connection with their campaign goals with the inventory available on our online properties in real time. We also create
operational efficiencies by selling our premium display and native ad inventory directly to advertisers, while
streamlining ad planning and buying and managing media campaigns through the use of technology and proprietary
first-party data sets.
Content Marketing. Our studioD business helps brands, advertisers and publishers develop a comprehensive and
integrated digital content strategy. We provide our customers with topically relevant custom content; advise
on distribution and publishing strategies; and track and measure client objectives to optimize content across formats and
devices. The content we provide spans across text articles and blogs, videos, photography and designed visuals, such as
infographics and animated GIFs. The content can be acquired outright or licensed, usually via revenue share agreements.
We have increased our investment in our content marketing services over the past two years and intend to continue to
expand this service offering in the future.
Marketplaces
Our Marketplaces service offering includes Society6, which we acquired in June 2013, and Saatchi Art, which we
acquired in August 2014. Over the last two years, we have expanded our marketplace offerings in several ways,
including continuing to introduce new products on Society6 and launching mobile applications for Saatchi Art and
Society6. Our marketplace platforms provide consumers with tools to discover a large selection of original artworks and
designs created by a leading global artist community of approximately 240,000 artists across both sites. Our
marketplaces empower artists to reach a global audience of art lovers and earn a living pursuing their passion, while we
handle various logistics such as coordination of print-on-demand production, global shipping and payment processes.
We believe that our marketplaces are distinguished by the high quality products, caliber of artists and superior customer
service we provide to both artists and buyers.
Society6. Society6 provides artists with an online commerce platform where they can feature and sell their
original designs on a wide variety of lifestyle and home décor products, including art prints, phone and tablet cases, t-
shirts and throw pillows. Artists post their designs, set the price for art prints, and select other products within the
Society6 product portfolio on which the design can be sold. After a product is purchased, we utilize third-party vendors
to produce, package and ship the product directly to the buyer. As of December 31, 2015, there were approximately
180,000 active artists on Society6, an increase of more than 38% from a year earlier. There are now more than 2.7
million unique designs available across the Society6 product portfolio, a 38% increase year-over-year. During 2015,
Society6 customers came from over 100 countries and approximately 39% of Society6’s users accessed its services via
mobile devices.